Bangalore: How India’s IT hub is preparing itself for the technology boom

Dec 23, 2020
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Karnataka, home to Bengaluru, is a state famed for its technological prowess. Noted engineer Sir M Visvesvaraya laid the foundations for the state’s technical development. The status of Bengaluru changed after the city became a hub for IT and software firms. The success story started in the late 80s when IT giants shifted base to the city. Then, the BPO (Business Process Outsourcing) boom further increased Bengaluru’s prestige as many BPO firms were founded in the city. Today, Karnataka accounts for 25% of the nation’s annual IT revenues of $160 billion.


Present Strengths and Scenario of Bengaluru Tech Sector


  • 80% of global IT firms have based their R&D centres and India operations in Bengaluru.
  • The city hosts the largest number of R&D facilities in India.
  • It is the fourth biggest technology center in the world after California’s Silicon Valley, London, and Boston.
  • Karnataka hosts 47 ITES/IT SEZs, including three technology and software parks with 2,160 firms in the dedicated IT zones.
  • Karnataka is India’s biggest software exporter and the state has more than 20% of the IT firms in the nation.


The Future of Bengaluru IT and Technology


It is well known that many Bengaluru firms across sectors are undergoing enormous disruption. Established companies face strong challenges from digital upstarts that are using business model innovations and advanced technologies to deliver compelling customer experiences. The result is organizations are rethinking their IT and technology services to define and digitize effective business models which will excite their customers.


Advanced Technologies


Bengaluru’s established IT setup is aiding global companies to flourish in the new technology era. The city is seeing a throng of organizations specializing in sophisticated technologies such as 3D printing, drones, blockchain, augmented reality/virtual reality, robotic automation, IoT (Internet of Things), and AI (Artificial Intelligence).


Digital transformation is making the IT services enterprises in Bengaluru reconsider their current business models and deal with margin stress on their conventional businesses. The IT sector is facing management shakeups, boardroom tussles, and layoffs as it attempts to adjust to the altering realities.


For instance, a retailing giant is shaking up its technology base in Bengaluru with help from a global networking company. A dedicated of team of about 15 people is carrying out the digital transformation and makeover across the more than 100 group stores of the retailer. Previously, a service vendor would utilize at least 75 employees for such a large-sized project and levy a huge amount of about Rs 60 crores for implementation. The training in Bengaluru is to ensure the rapid automation of on-premise systems to further reduce manpower needs.


Client Expectations from IT Services Companies


Enterprises measure the returns on their digital investments in terms of decreased risk to their business, empowered workforce, improved operational efficiencies, new streams of revenue, and enhanced customer experience. Such clients want service firms to advise them on their digital transformation, act as change agents, and provide excellent outcomes. In short, client organizations want service providers to go beyond order taking and become their true digital journey partners. We think that these expectations and demands are changing the construct of technology and IT services companies in Bengaluru.


The Karnataka government has taken an initiative and is creating centres of excellence for cybersecurity, AI, and big data in Bengaluru and other IT hubs in the state to prepare for the technologies of the future. We believe these steps can ensure that Bengaluru retains its IT leadership status in the coming years.


Growth of the Data Centre Market in Bengaluru


The data centre market in Bengaluru is predicted to grow at a CAGR of 16% between 2017 to 2023 reveals a report by S&P Global Market Intelligence. STT GDC India is a leading colocation services provider in India and we operate data centres in Bengaluru and other Indian cities to deliver reliable and scalable infrastructure to our client companies.


In Bengaluru, we have data centres in Sanjay Nagar, KIADB, and Whitefield. These facilities are compliant with industry regulations and provide guaranteed 99.999% uptime. Our data centres have been built as highly secure and resilient facilities flaunting the highest standards of technical and structural design specifications for data centres. They serve as the infrastructure and internet service backbone of global digital enterprises that have set up their operations in Bengaluru.